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MORE details have emerged about Schapelle Corby's sister Mercedes who was mugged and brutally assaulted by a group of men trying to rob her of her handbag in Kuta, Bali.

Mercedes told News Ltd from her hospital room in Denpasar that she was mugged for her handbag in a robbery believed to involve five people.

"It was a mugging for my handbag," Mercedes said.

"I'm on the mend," she said.

Australian man Paul Glass said he came to Ms Corby's aid after becoming concerned when he saw her yelling and surrounded by a group of men.

"They had her cornered in near a shed in this back alley," Mr Glass said. "She was surrounded by what looked like Balinese guys and one was standing in front of her."

"I was worried so I came up and stood next to her and she grabbed me by the arm and said 'look what they did to me, look what they did to me'.

"One of the men told me to go away but I told him I was staying."

Mr Glass said she didn't see the assault but described Ms Corby as being "very badly beaten up".

"Her right eye was completely closed and there was a lot of blood on her face," he said.

"They'd given her a hiding."

Mercedes, 39, suffered a severely broken nose and bleeding in one eye when she was assaulted by the group of Indonesian men as they tried to snatch her handbag in a Kuta street.

According to one Australian man who says he witnessed the event in Bali, "she had blood all over her face and her eyes were closed".

According to Kuta police, Mercedes’ husband, Wayan Widiartha, made a police report about the attack on his wife to the Kuta station on Saturday morning.

But that initial version did not contain any allegations that Mercedes had been the victim of an attempted bag snatch or robbery.

Police sources said Mr Widiartha had reported that his wife was on the way home from a birthday party at 12.30am on Saturday when she heard some people making derogatory comments about her in the Balinese language, which she understood.

Police said Mr Widiartha told them that at this time she stopped to argue with them and was punched and injured.

The incident occurred in Poppies Lane 11 in Kuta, a busy sideroad off the main street of Jalan Legian.

Police said that they had not heard, except from the media, about the claims that men had tried to rob Mercedes of her handbag.

They have yet to formerly interview and take a statement from Mercedes, saying they are waiting until she is well enough.

Mr Widiartha confirmed his wife was robbed by seven people in Kuta and that she was injured while trying to fight them off and stop them from stealing her handbag.

He said the incident happened just as Mercedes was getting on her motorbike and the men had tried to steal her handbag.

He said his wife, who had a black belt in martial arts, had fought back and was then helped by a friend.

Mr Widiartha said his wife was inside their home, resting, after being discharged from hospital.

A hospital staff member earlier told news.com.au Mercedes had been initially expected to stay for up to four days.

"She is OK," she said. "We've already operated.

"Some of the family (is here)."

Mercedes on Tuesday left the Kasih Ibu hospital in Denpasar, Bali’s capital, where she had been staying in a private room.

An angry Mr Widiartha said Kuta was becoming dangerous and needed to be cleaned up.

Mr Widiartha also denied rumours that he and Mercedes have split up, a move that could put Schapelle's parole bid in danger.

"We are still together. We are still in love," he told News Ltd from his central Kuta home this afternoon.

Mercedes's mother Rosleigh Rose confirmed the incident to news.com.au, but said her daughter wanted privacy.

"She's asked for privacy at the moment. I can't say any more," she said. "I'll just get upset. I don't want to talk about it."

Mercedes lives in a traditional Balinese compound home in central Kuta with her two children and her husband.

Mercedes has been living in central Kuta since her younger sister was arrested and jailed in 2005 for smuggling 4.2 kilograms marijuana into Bali inside a body board bag.

In recent months she has been fighting for Schapelle, 36, who has always claimed she is innocent and was set up by a smuggling ring, to be released on parole and either allowed to live with her in Bali or return to Australia.

Reports today claimed Mr Widiartha had not lived in the family compound in Kuta for some months and was living elsewhere.

An important part of Schapelle Corby's parole bid, under intricate Indonesian parole laws, is the promise that she could live with Mercedes and Mr Widiartha if released.

The couple would help her financially, with her "morale" and oversee her education as "a responsible citizen".

Sources said the couple have not split, but had rented a second property in Kuta because they needed more space.

Their original family compound had become too well-known and their neighbours were angry that it was the centre of attention, the sources said.

Muggings of tourists have become common in Kuta and sources close to the family said the incident had nothing to do with Schapelle.